MDC Corp. increases prices in tender offer

New York, March 20 - MDC Corp. Inc. increased the range of prices it is offering in its dutch auction tender to buy back its outstanding 10½% senior subordinated notes due Dec. 1, 2006, raised the consent fee and extended the deadline for receiving the consent payment.

The Toronto, Ont. business services company is now accepting offers of between $860 and $880 per $1,000 principal amount in the dutch auction, increased from $800 to $820 previously.

At the same time, MDC raised the consent fee to $10 per $1,000 principal amount of notes from $2.50 per $1,000.

The deadline to receive the consent payment has been pushed back to 5.00 p.m. ET on March 22 from midnight ET on March 20.

The overall expiration date of the offer remains unchanged at midnight ET on April 4.

All previously delivered consents and tendered notes are considered to have been withdrawn, MDC said.

Funding for the tender offer will come from the C$185 million net proceeds from the sale of its remaining 50.01% interest in its Davis + Henderson LP, MDC's Canadian check division.

Goldman, Sachs & Co. is dealer manager for the offer and as solicitation agent for the consent dolicitation.

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